Auto Insurance

Auto Insurance Defined

Auto Insurance

This is insurance which protects the insured against losses involving the use of automobiles. Various coverage may be obtained depending on the desires of the consumer. Coverage will include liability which is bodily injury, property damage, medical payments, and the physical damage coverage of collision and comprehensive.

Anti-Theft Device

The is can be passive or active. A passive system is a basic audio alarm system. An active alarm system is device that is capable of tracking and recovering the automobile, usually through a homing device. This type of system will contact a response center to begin the process of recovering the stolen automobile.

Bodily Injury Coverage

This coverage pays when an insured is legally liable for bodily injury or death caused by an insured's vehicle or an insured's operation of most non-owned vehicles. This coverage would also pay for a legal defense if an insured were sued. The payout is limited to the coverage of the policy. Any judgment over these limits would be out-of-pocket expenses

Business Auto Coverage Form

The most recent commercial auto insurance coverage form to be used. It can be underwritten as a monoline policy or as part of a commercial package.

Business Auto Policy

This is a policy which covers Liability and Physical damage on commercial automobiles.

Collision Coverage

Auto Insurance that covers loss to the insured's automobile caused by its collision with another vehicle or object but which does not cover bodily injury or property damage liability resulting from the collision.

Comprehensive Coverage

Commonly known as physical damage coverage resulting from losses caused by events other than collision including fire, theft, vandalism, falling objects and various other perils.

Continuously Insured

Refers to insurance coverage being in effect from an insurer or multiple insurers at all times, without a break or lapse in coverage at any time for any reason.

Declaration Page

This is the report from your insurance company which includes the types, limits, and costs for each coverage as well as the vehicles covered by the policy. It also would include the types of coverage for each vehicle covered by the policy and other pertinent information.

Deductible

This is the amount an insured agrees to pay in the event of a loss. typically a higher deductible will lower your policy cost

Drive Other Car Endorsement (DOC)

This is a coverage that can be added to an policy providing auto coverage for individuals named in the endorsement while they are driving autos but not owned by the individuals and not named in the policy. Otherwise known as DOC coverage.

Extended Non-Owner Liability

This is an endorsement to a personal auto policy that provides broader liability coverage only for specified named individuals. This endorsement provides cover for non-owned autos provided for the regular use of an insured, use of autos to carry individuals or property for a fee, and broader coverage for autos used in the course of business.

Financial Responsibility Clause

This clause states that an auto policy conforms to the financial responsibility laws of the insured's state in which the insured is using the insured automobile.

Fleet Policy

This is an insurance policy that applies to a multiple number of vehicles, typically five or more.

Good Student Discount

This is a discount awarded to students with high scholastic achievement.

Hired Automobile

This coverage applies to autos an insured leases, hires, rents, or borrows, but not for autos owned by employees or their families.

Limits

The most an insurance company will pay for a specific insurance coverage. Individuals can choose the limit, which meets their needs. Many states have laws that specify the minimum limits an insured must purchase. The higher the limit, the higher your cost. Leases will typically have higher liability limits normally starting at $100,000.00

Motor Vehicle Record

The driving record of an individual which includes accidents and traffic violations. It is also known as an MVR. Named Insured- It is the first individual in whose name the auto insurance policy is issued.

No-Fault Insurance

Many states have laws permitting the individual automobile accident victim to collect monies directly from their own insurance company for medical and hospital expenses regardless of whose fault the accident was. The laws vary from state to state. However, most states will allow the individual to sue the party at fault if the amount of damages is higher than a certain stated limit.

Occasional Driver

An individual who is not the primary or principal driver of the automobile.

Personal Injury Protection (PIP)

These policies refer to no-fault benefits in states that have enacted mandatory or optional no-fault auto insurance coverage. Generally, PIP includes benefits for medical expenses, loss of work income, accidental death and funeral expenses.

Safe Driver Plan

This is a plan for which a discount is given for those with a clean driving record

SR-22

This is a document required by the court for individuals convicted of certain types of traffic violations that shows proof of financial responsibility.

Transportation Expenses

This is coverage for transportation expenses incurred by the named insured only when the theft of the insured's automobile occurs. There is a daily and maximum dollar limit.

Underinsured Motorists Coverage

This is coverage in an auto policy for which the insurer will pay claims up to certain limits for bodily injury damages, if the limits of liability under the liable motorist's policy are completely used up and the liable motorist can't pay the full amount for which he is liable.